Leonard Brecken’s Big Short

Insider Monkey

Mar. 23, 2011, 11:18 AM

Leonard Brecken predicted that Netflix (NFLX) is going to fall 70% within 12 months. He was on CNBC's Fast Money and told viewers that Netflix is playing accounting games and that content costs are skyrocketing.

He also said Netflix has $1.4 billion in off-balance sheet content obligations (including the deals that are in the pipeline) and Netflix won't be able to make its money back. He claimed Netflix needs 80% penetration of the U.S. broadband market- which is next to impossible.